Indonesia’s Unemployment Rate Drops, but Gen Z and Women Lag in Labor Market
Jakarta. Indonesia’s unemployment rate fell to 4.74% in November 2025, with Gen Z accounting for the largest share of the unemployed, while women continue to earn significantly less than men, according to official data from the Central Statistics Agency (BPS).
"Out of a total labor force of 155.27 million people, 7.35 million remain unemployed. Unemployment drops by 0.11 percentage points from August 2025, while the absolute number of unemployed falls by about 109,000 over the same period," BPS chief Amalia Adininggar Widyasanti said at a press conference in Jakarta on Thursday.
Unemployment remains concentrated among younger Indonesians. In November 2025, the open unemployment rate for the 15–24 age group stands at 16.26%, the highest among all age groups, BPS data shows. By contrast, the unemployment rate for those aged 60 and above is the lowest at 1.44%. Compared with August 2025, only the 25–59 age group records a slight increase in unemployment, rising by 0.05 percentage points, while all other age groups see declines.
Job absorption is driven largely by agriculture, trade, and manufacturing, which together account for 60.52% of total national employment.
Between August and November 2025, the number of employed Indonesians rose by 1.37 million to 147.91 million, according to BPS. The increase is led by full-time employment, which climbs by 1.85 million to 100.50 million workers. In contrast, part-time employment declines by 438,000 to 35.59 million, while the number of underemployed workers falls slightly by 42,000 to 11.56 million.
“The largest employment gains occur in accommodation and food services, which add 381,000 workers,” Amalia says. Manufacturing follows with an increase of 196,000 workers, while the trade sector adds 168,000 jobs.
As a result, the share of full-time workers rises to 67.94% of total employment in November 2025, up from 67.32% in August. Part-time workers account for 24.24%, while underemployment stands at 7.81%, pointing to an overall improvement in job quality.
Women Still Earn Less Than Men
BPS data also shows average monthly wages reach Rp 3.33 million ($200) in November 2025, offering a snapshot of income conditions alongside employment gains.
Wage data highlights persistent disparities by gender, sector, education, and age. Average monthly wages for male workers stand at Rp 3.61 million, compared with Rp 2.82 million for female workers.
By industry, the highest average wages are recorded in the information and communications sector at Rp 5.17 million, while the lowest are found in other services activities, averaging Rp 1.96 million.
Education continues to play a significant role in income levels. Workers holding diplomas and university degrees — including undergraduate and postgraduate qualifications — earn an average of Rp 4.63 million per month, more than double the Rp 2.22 million earned by workers with primary school education or less.
Age-based data also highlights wage gaps. The highest average wages, at Rp 3.78 million, are earned by workers aged 40–44, while the lowest average wages, at Rp 2.06 million, are recorded among workers aged 15–19.
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